Lula approves law that increases tax on betting from 12% to 15% by 2028.

President Luiz Inácio Lula da Silva has signed Complementary Law No. 224 , which increases taxation on betting establishments and reduces tax incentives by 10%. The signed text was published in an extra edition of the Official Gazette of the Union (DOU) and will come into effect in 2026.

The new law modifies the taxation on sports betting, known as "bets," gradually increasing the tax rate on gross revenue from the current 12% to 15% by 2028. With these and other changes, including modifications to the rules for fintechs and Interest on Equity (JCP), the government projects to collect approximately R$ 20 billion in additional revenue.

The measure was approved by the Plenary of the Chamber of Deputies in the early hours of July 17, by 310 votes in favor and 85 against, based on the report of the substitute text to Complementary Law Project 128/2025, authored by Deputy Aguinaldo Ribeiro (PP-PB). After approval in the Chamber, the project went to the Federal Senate, where it was included in the Order of the Day due to an agreement with the President of the Senate, Davi Alcolumbre.

Joint liability for financial institutions

The legislation establishes that banks and payment institutions will be jointly liable for taxes if they allow transactions with unauthorized betting sites. This liability will occur after formal notification from the competent authority, if the institutions do not adopt restrictive measures within the specified deadlines.

Article 6 of the Law stipulates that joint liability also applies to individuals or legal entities that disseminate advertising for betting operators without legal authorization. The Ministry of Finance will be responsible for regulating these provisions.

"The following are jointly liable with taxpayers for taxes levied on the operation of fixed-odds betting and on the receipt of net prizes arising therefrom: I – financial and payment institutions and payment providers that, after formal and specific notification from the competent federal authority, fail to adopt, within the terms and deadlines established by regulation, restrictive measures and allow transactions, or give effect to them, that have as their purpose the carrying out of fixed-odds betting with legal entities that have not received authorization to operate fixed-odds betting under federal legislation," the text establishes.

The proposal arises in a context where the betting market faces multiple proposals for tax regulation. Currently, there are three bills under consideration that directly impact the fixed-odds betting and online gaming sector in Brazil, including the Anti-Faction Bill (5582/25), the Security Amendment (18/25), and Bill 5.473/25.

CHAPTER IV

ON TAX LIABILITY RELATED TO THE ILLEGAL OPERATION OF FIXED-ODDS BETTING

Article 6. The following are jointly liable with the taxpayers for taxes levied on the operation of fixed-odds betting and on the receipt of net prizes arising therefrom:

I – Financial and payment institutions and payment providers that, after formal and specific notification from the competent federal authority, fail to adopt restrictive measures within the regulatory terms and deadlines, and allow or proceed with transactions aimed at placing fixed-odds bets with legal entities that have not received authorization to operate fixed-odds bets under federal law;

II – natural or legal persons who disseminate advertising or commercial promotion for fixed-odds betting lottery operators that are not authorized under federal law.

Sole paragraph. The Ministry of Finance will regulate the provisions of this article.

Distribution of revenue

The Complementary Law amends Article 30 of Law No. 13.756 of 2018, defining new percentages for the distribution of funds collected from bets. Of the total, after specific deductions, 85% will be allocated to cover the operating and maintenance expenses of the betting operator, 3% will go to social security (half for health actions), and 12% will have specific destinations.

“From the proceeds collected after deducting the amounts referred to in items III and V of the heading of this article, 85% (eighty-five percent) will be allocated to cover the operating and maintenance expenses of the lottery operator for fixed-odds betting and other betting games, excluding the lottery modalities provided for in this Law; 3% (three percent) will be allocated to social security, provided that half of this percentage is mandatorily allocated to health actions and without prejudice to the allocation provided for in item IV-A of this paragraph; and 12% (twelve percent) will have the following allocations:”, the text defines.

The legislation provides for a gradual transition of these percentages over the next few years. In 2026, the distribution will be 87% for the operating agent and 1% for social security. In 2027, the values ​​will change to 86% and 2%, respectively.

“The percentages of revenue allocated as provided in § 1-A for covering the operating and maintenance expenses of the operating agent and for social security, without prejudice to the allocation provided for in item IV-A of § 1-A of this article, shall be, respectively: I – in 2026, 87% (eighty-seven percent) and 1% (one percent); II – in 2027, 86% (eighty-six percent) and 2% (two percent).”

Article 9. Article 30 of Law No. 13.756, of December 12, 2018, shall now read as follows:

“Article 30. ………………………………………………………………………………………………………………………..

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§ 1-A. Of the proceeds collected after deducting the amounts referred to in items III and V of the heading of this article, 85% (eighty-five percent) shall be allocated to cover the operating and maintenance expenses of the lottery operator for fixed-odds betting and other betting games, excluding the lottery modalities provided for in this Law; 3% (three percent) shall be allocated to social security, provided that half of this percentage shall be mandatorily allocated to health actions and without prejudice to the allocation provided for in item IV-A of this paragraph; and 12% (twelve percent) shall have the following allocations:

……………………………………………………………………………………………………………….

§ 1º-E. The percentages of revenue allocated as provided in § 1º-A for covering the operating and maintenance expenses of the operating agent and for social security, without prejudice to the allocation provided for in item IV-A of § 1º-A of this article, shall be, respectively:

I – in 2026, 87% (eighty-seven percent) and 1% (one percent);

II – in 2027, 86% (eighty-six percent) and 2% (two percent).

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§ 9 The contribution referred to in item IV-A and the heading of § 1-A of this article shall be calculated and collected by the operating agents, monthly, in the manner established by the Special Secretariat of the Federal Revenue of Brazil of the Ministry of Finance, in the exercise of the powers referred to in art. 2 of Law No. 9.003, of March 16, 1995.

……………………………………………………………………………………………………………………….” (NR)

Initially, the Ministry of Finance had proposed increasing the tax from 12% to 18%, but after discussions and an impact report from the Federal Revenue Service, the rapporteur and representatives from the Ministry of Finance agreed on a 15% tax, applied progressively. As Congressman Aguinaldo Ribeiro explained, the intention is to "curb the proliferation of illegal and dishonest gambling that exploits the vulnerabilities of the population, especially those with low incomes" and to expand "the contribution that betting houses make to society, by reinforcing revenue for social security."

The Special Secretariat of the Federal Revenue of Brazil, linked to the Ministry of Finance, will establish the method for calculating and collecting contributions. According to the law, "The contribution referred to in item IV-A and the heading of § 1-A of this article will be calculated and collected by the operating agents, monthly, in the manner established by the Special Secretariat of the Federal Revenue of Brazil of the Ministry of Finance, in the exercise of the powers referred to in article 2 of Law No. 9.003, of March 16, 1995."

Complementary Law No. 224 also modifies other legislation, including the Fiscal Responsibility Law, and establishes criteria for granting tax, financial, and credit benefits within the scope of the Union.